Nine major pharmaceutical companies agree to a deal with Trump to lower US prices
American President Donald Trump said that the United States will no longer be able to subsidize the prices of pharmaceuticals in the world as he announced an agreement with nine major pharmaceutical companies to reduce the prices of medicines sold in his country.
Nine companies – Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi – will lower the prices of their drugs through the government’s Medicaid program and payers.
In a statement, the White House said the President signed nine agreements “with companies to lower prescription drug prices for Americans in line with the lower prices paid by other developed nations (known as the most favored nation, or MFN, price)”.
In a press conference, Trump said: “We used to fund the whole world. We don’t anymore.”
The White House statement said the agreements ensure that foreign countries will no longer be able to use price controls to free-ride on American innovation by guaranteeing MFN prices for all new drugs brought to market by nine companies.
American patients currently pay the most for prescription drugs, often nearly three times as much as in other developed countries, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere.
Giving examples of other price reductions by using TrumpRxWebsite .GovThe White House said…
- Amgen’s cholesterol-lowering drug Repatha from US$573 to US$239
- Bristol Myers Squibb’s HIV drug, Reyataz, from US$1,449 to US$217
- Boehringer Ingelheim’s type 2 diabetes drug, Jentadeuto, from US$525 to US$55
- Gilead Sciences’ Hepatitis C drug, Epclusa, from US$24,920 to US$2,425
- Merck’s diabetes drug, Januvia, from US$330 to US$100
- Novartis’ multiple sclerosis drug, Mayzent, from US$9,987 to US$1,137
- Sanofi’s prescription blood thinner, Plavix, is down from $756 to $16 and its insulin products are $35 a month.
The agreements included reduced copays, direct prices to consumers for certain drugs sold through the TrumpRx.gov website, introducing drugs in the US at prices comparable to those in other wealthy countries and expanding manufacturing.
In return, companies can get a three-year exemption from any taxes.
In July, Trump sent letters to the leaders of 17 major drug manufacturers, urging them to offer MFN prices to Medicaid and ensure that new drugs are introduced at prices not higher than those in other rich countries.
Five companies have previously cooperated with regulators to boost prices – Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk and EMD Serono, the US unit of Germany’s Merck KGaA. Three companies – Regeneron, Johnson & Johnson, and AbbVie – now remain.
The companies have pledged together to invest more than US $150 billion in US R&D and manufacturing, according to officials.
